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Chapter 2, Part III. There is quite different story with the futures market... Page 5

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 14, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

    Aug 28, 2009
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    MYTH #8 The Futures market is a bit more difficult to trade due to contract time of expiration schedule and delivery risk


    Each currency pair trade as futures contract and this contract has predetermined day of expiration and/or delivery. So, if you do not intend to make a real delivery of currency, you should make a roll-over – close your position in current contract that is near to expiration and open it in the next period contract. You will know this date far ahead of time, because the exchange has definite rules when different contracts will expire or can be executed for delivery. If you do not want to dig around for all this stuff, the exchange also publish a schedule for the last trading days of each contract. All you need to do is just look in it and make a roll-over. In fact this is much simpler than it looks at first glance.​

    MYTH #9 The futures market has less available currency pairs to trade and some exotic pairs have a limited liquidity

    Partially True

    Well, currently CME (Chicago mercantile exchange) has about 40 pairs to trade. These include crosses, exotic pairs and of course 10-12 major pairs. May be some spot FOREX brokers can offer you more exotic pairs. But taking into account the fact that the most part of trades are made with major pairs, this difference looks insignificant.​
    #1 Sive Morten, Dec 14, 2013
    Lasted edited by : Feb 6, 2016
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